Revlon’s partner to invest ₹100 cr to boost distribution
2 min read 20 Mar 2023, 11:12 PM ISTUmesh Modi, chairman of U.K. Modi Group, which markets Revlon and Street Wear, said it will build its presence and distribution network considering the significant rise in competition in India‘s beauty and personal care market
PremiumNEW DELHI : Umesh Modi Group, the local partner of Revlon, will invest ₹100 crore to expand its distribution network a year after the global cosmetics firm filed for bankruptcy following covid-linked supply chain issues disrupting business. Umesh Modi, chairman of U.K. Modi Group, which markets Revlon and Street Wear, said it will build its presence and distribution network considering the significant rise in competition in India‘s beauty and personal care market with online retailers giving enough reason to consumers to experiment with new brands, while several direct-to-consumer brands also gain market share.
“We will have to invest over ₹100 crore over a span of three years," Modi said at the company’s headquarters in New Delhi. The investment will go into building the sales teams, distribution networks and to fund marketing activity. “The India business can become a ₹800-1000 crore entity in the next five years."
As part of the plan, it is set to roll out more mass-premium coloured cosmetics under the Revlon brand, targeting consumers at the ₹300-500 price point and effectively competing with Loreal’s Maybelline and Hindustan Unilever Ltd’s Lakme. It will also launch hair colours for the Color N Care brand for less than ₹250. To be sure, Revlon entered the coloured cosmetics market in India in 1995 via Modi-Mundipharma Beauty Products Pvt Ltd (formerly Modi-Revlon), which was part of Umesh Modi Group. It sells colour cosmetics, fragrances, and hair care of products through a network over 50,000 outlets in India.
In June last year, American cosmetic maker Revlon Inc., filed for bankruptcy as covid-led supply-chain disruptions caused resulted in high raw material prices, and the company’s debt ballooned. Global supply issues also led to product shortage. Meanwhile, globally, newer, emerging brands are also giving stiff competition to the likes of Revlon. Covid has changed the market dynamics, pushing shoppers online and discovering new brands. “You have to adopt yourself to the market. During covid, the e-commerce boom led to a discovery of certain products at lower price points. Brands like Sugar and MyGlamm entered the market. Revlon will take advantage of its premium positioning and go to mass-premium," he said.
“If you want a large company, then you have to have a large base of consumers. So that’s what we are targeting both in personal care and colored cosmetics," he added.
To be sure, Modi-Mundipharma has rights to sell the Revlon brand for life. The pandemic and news of the brand’s weakened financial state had a temporary impact on the India business. However, Modi, said sales at Revlon has grown as market mobility improved.
“They got sold to banks. We have the brands for life, but it does affect. A new player has come on the anvil; that player will arrive in April. The management of Revlon US has not yet changed. The new owner, a fund will definitely take over. When a fund takes over, their objective is to grow the business two-to-three times. I’m very sure a new strategy will emerge worldwide," he added.
